Streetbeat News

Labor Issues

BCS

Barclays Plc has initiated layoffs targeting 3% of its global investment banking workforce in an attempt to streamline its franchise after a challenging year.

Portfolio Pulse from Benzinga Newsdesk

October 04, 2023 | 2:43 pm

GM

JPM

General Motors Company (GM) has established a $6 billion credit line with JP Morgan Chase & Co. (JPM) as a strategic move to prepare for an extended strike that could impact its financial reserves. The credit agreement requires GM to maintain at least $4 billion in global liquidity and $2 billion in U.S. liquidity. The ongoing labor dispute has already cost GM an estimated $200 million as of the end of September.

Portfolio Pulse from Nabaparna Bhattacharya

October 04, 2023 | 2:40 pm

SPY

Over 75,000 employees of Kaiser Permanente have initiated a three-day strike, potentially the largest healthcare strike in US history. The strike is expected to disrupt services for nearly 13 million people in several states. Kaiser Permanente has assured that hospitals and emergency services will continue functioning through staff reassignments and replacement workers. The company has disputed claims of unfair treatment, stating that they offered wage increases of at least 12.5% over four years.

Portfolio Pulse from Vandana Singh

October 04, 2023 | 2:39 pm

GM

General Motors Co has estimated the cost of the Q3 UAW strike at $200 million, according to Reuters News.

Portfolio Pulse from Benzinga Newsdesk

October 04, 2023 | 2:04 pm

ATEN

CDT

KA

MKUL

VINO

VVOS

U.S. stocks traded higher with the Dow Jones gaining over 50 points. The ADP reported that private businesses in the U.S. added 89,000 workers in September, the least since Jan. 2021, and below market estimates of 153,000. Shares of Conduit Pharmaceuticals, Gaucho Group Holdings, and Vivos Therapeutics rose significantly, while shares of Kineta, A10 Networks, and Molekule Group fell. Molekule Group and its subsidiary have filed for Chapter 11 bankruptcy.

Portfolio Pulse from Lisa Levin

October 04, 2023 | 1:44 pm

GM

HMC

RIVN

TM

TSLA

Tesla's Q3 vehicle deliveries slowed down, raising concerns about demand. Rivian topped quarterly delivery estimates, doubling EV production. General Motors, Toyota, and Honda posted stronger-than-expected US auto sales. Tesla reaffirmed its annual target of 1.8 million vehicles. Rivian is on track to make 52,000 EVs this year. General Motors' sales rose 21% YoY, but the impact of the ongoing UAW strike is yet to be seen. Toyota and Honda also reported strong sales growth. The UAW strike could potentially benefit Tesla due to increased costs and wages for other automakers.

Portfolio Pulse from Upwallstreet

October 04, 2023 | 1:35 pm

BA

CSCO

SBUX

On CNBC's 'Halftime Report Final Trades', Starbucks Corporation (SBUX), Cisco Systems, Inc. (CSCO), and The Boeing Company (BA) were named as final trades. Starbucks was found in violation of federal labor law for selectively raising wages at non-unionized stores. Cisco Systems announced its acquisition of Splunk Inc (SPLK) for $28 billion. Boeing is reportedly increasing the production of its 737 aircraft due to a surge in orders.

Portfolio Pulse from Priya Nigam

October 04, 2023 | 1:14 pm

ADP

Private sector employment growth in the US has slowed for the third consecutive month, with 89,000 new payrolls added in September, down from 177,000 in August and below the expected 153,000, according to Automatic Data Processing Inc. (ADP). This is the slowest pace of monthly employment gains reported by ADP since January 2021. Factors contributing to the slowdown include elevated interest rates, reduced discretionary spending, and concerns about a potential US government shutdown.

Portfolio Pulse from Piero Cingari

October 04, 2023 | 12:25 pm

F

GM

STLA

TSLA

Analyst Dan Ives remains bullish on Tesla (TSLA) despite its current lackluster phase. He views the UAW strike as a win for Tesla, as it could lead to higher costs for Detroit automakers like General Motors (GM), Ford (F), and Stellantis (STLA), which could be passed on to consumers. Ives also believes Tesla will be able to absorb excess inventory by Q4 and that demand will increase with the start of Cybertruck production. He sees Tesla gaining market share in China and views the company as a disruptive technology company rather than just an auto company.

Portfolio Pulse from Shanthi Rexaline

October 04, 2023 | 7:19 am

META

QCOM

Meta Platforms Inc. (NASDAQ:META) is reportedly preparing to lay off employees in its metaverse-oriented silicon unit, Reality Labs. The extent of the workforce reductions remains uncertain, raising concerns about the impact on Meta’s ambitious metaverse projects. Meta has been collaborating with Qualcomm (NASDAQ:QCOM) for its current device lineup due to challenges in producing competitive in-house chips. The layoffs are part of Meta's efforts to address investor concerns about cost control amidst declining revenue growth and elevated inflation.

Portfolio Pulse from Ananya Gairola

October 04, 2023 | 2:14 am